All of the States and US Territories have their own independent requirements for operating as a telecommunications carrier.

All require registration as either an in-state or foreign entity doing business the that state.

 

MODAS tracks the complex and ever-changing rules and rates for over 43,000 tax jurisdictions across the US. Our platform lets you focus on managing your business, not your tax obligations and growing compliance challenges.

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We lower your tax and accounting costs.

We remove the tax compliance burden from your business.

  • You no longer need to research and maintain tax tables, we do it for you.
  • We eliminate complex reporting with our built-in reporting and flexible data extract capabilities.
  • With an increase in overall accuracy we lower your risk of both non-compliance and over payment.
We help your business remain agile.

We provide the required flexibility for rapid growth in this tight market.

  • You can quickly add new products on demand.
  • Bundling services to remain market-competitive is easy.
  • Expanding to new states is a simple.

Markets

  • IoT/M2M
  • Cost Recovery
  • VoIP
  • Satellite
  • SaaS
  • Managed Services

Sales Tax Nexus laws are changing and they vary by state… Some examples include:

Nebraska L.B. 1087
Presumes sales tax nexus either if any one of several criteria are met, including: a seller using an in-state affiliate to facilitate their operations, utilizing an in-state marketplace provider, or having cumulative sales into the state in excess of $10,000 in the previous year.

Rhode Island H.B. 7375
Presumes sales tax nexus either if any one of several criteria are met, including: a seller using an in-state affiliate to facilitate their operations, utilizing an in-state marketplace provider, or having cumulative sales into the state in excess of $10,000 in the previous year.

South Dakota S.B. 106
Stipulates that an out of state seller has nexus with the state for sales tax purposes if their gross revenue from sales into the state exceeds $100,000 in the previous year or if they engaged in 200 or more separate transactions.

NEW YORK
A provider’s communications services used to provide customers with connectivity to its proprietary network distinct from the Internet are taxable telecommunications services, but to the extent that the services furnished Internet access service, as defined in federal law, that service would be exempt from tax. TSB-A-09(17)C, (60)S (Dec. 15, 2009)

Matter of Central New York Online, DTA No. 819631 ( N.Y. Div. of Tax App. March 10, 2005) – ISP’s purchase from telecommunications providers of access to circuitry connecting its facilities to the global Internet constituted purchasing Internet access service not subject to tax.

PENNSYLVANIA
Internet access is considered “enhanced telecommunication service” not subject to the Pennsylvania Sales Tax. 61 Pa. Code § 60.20

Services that do not qualify as enhanced telecommunication services include Intranet transmission — transmissions to, from or within a network serving a single organization or site that is modeled after the Internet , allowing users access to almost any information available on the network (typically limited to one organization or one site, with little or no access to outside users). Pennsylvania Sales Tax Bulletin, No. 2005-03 (Sept. 30, 2005)

America Online, Inc. v. Commonwealth of Pennsylvania, 932 A.2d 332 (Pa. Commw. Ct.
2007), aff. en banc 942 A.2d 236 (Pa. Commw. Ct. 2008) – ISP’s purchase of service connecting AOL’s customers through telecommunications provider’s data network to AOL’s data center, from which AOL provided access to the Internet, was a taxable telecommunications service

MASSACHUSETTS
Separately stated data transfer fees for uploading and downloading data provided as part of a “cloud service” are taxable telecommunications services. Massachusetts Letter Ruling 12-8 (July 16, 2012)

Taxable telecommunications include charges for transmission of data or information by various means, including transmission over the Internet. Id.

KANSAS
Internet access service does not include charges for accessing restricted websites. Kansas Private Letter Ruling No. P-2011-003 (05/03/2011)

“Cloud services’ are generally not taxable, but cloud-computing used to route “electronic … voice, data, audio, video or any other information or signals to a point, or between or among points” are charges for telecommunications or ancillary services. Kansas Private Letter Ruling No. P-2013-001 (07/03/2013)

Such services charges are often mischaracterized by legal and technical arguments that assert they are nontaxable customer charges for such items as Internet access or any other terms used to describe customer access to and use of remote software and servers. Id.

CONNECTICUT
While Internet access services are not subject to tax, other aspects of providing access to information remain subject to tax. Connecticut Policy Statement 2004(2) (Oct. 21, 2004)

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